Page 8

Distributions from Individual Retirement Ar- rangements (IRAs), for more information about QCDs. Value of Time or Services You can't deduct the value of your time or serv- ices, including: • Blood donations to the American Red Cross or to blood banks, and • The value of income lost while you work as an unpaid volunteer for a qualified organi- zation. Personal Expenses You can't deduct personal, living, or family ex- penses, such as the following items. • The cost of meals you eat while you per- form services for a qualified organization, unless it is necessary for you to be away from home overnight while performing the services. • Adoption expenses, including fees paid to an adoption agency and the costs of keep- ing a child in your home before the adop- tion is final. However, you may be able to claim a tax credit for these expenses. Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expen- ses. See Form 8839, Qualified Adoption Expenses, and its instructions, for more in- formation. Appraisal Fees You can't deduct as a charitable contribution any fees you pay to find the fair market value of donated property. Contributions to Donor-Advised Funds You can't deduct a contribution to a donor-ad- vised fund if: • The qualified organization that sponsors the fund is a war veterans' organization, a fraternal society, or a nonprofit cemetery company; or • You don't have an acknowledgment from that sponsoring organization that it has ex- clusive legal control over the assets con- tributed. There are also other circumstances in which you can't deduct your contribution to a do- nor-advised fund. Generally, a donor-advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or in- vest amounts held in the fund. For details, see Internal Revenue Code section 170(f)(18). Partial Interest in Property Generally, you can't deduct a contribution of less than your entire interest in property. For de- tails, see Partial Interest in Property under Con- tributions of Property, later. Contributions of Property If you contribute property to a qualified organi- zation, the amount of your charitable contribu- tion is generally the fair market value of the property at the time of the contribution. How- ever, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. See Giving Property That Has Increased in Value, later. For information about the records you must keep and the information you must furnish with your return if you donate property, see Substan- tiation Requirements and How To Report, later. Contributions Subject to Special Rules Special rules apply if you contribute: • Clothing or household items; • A car, boat, or airplane; • Taxidermy property; • Property subject to a debt; • A partial interest in property; • A fractional interest in tangible personal property; • A qualified conservation contribution; • A future interest in tangible personal prop- erty; • Inventory from your business; or • A patent or other intellectual property. These special rules are described next. Clothing and Household Items You can't take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better. Exception. You can take a deduction for a contribution of an item of clothing or a house- hold item that isn't in good used condition or better if you deduct more than $500 for it, and include a qualified appraisal prepared by a qualified appraiser and a completed Form 8283, Section B. Household items. Household items include: • Furniture and furnishings, • Electronics, • Appliances, • Linens, and • Other similar items. Household items don't include: • Food; • Paintings, antiques, and other objects of art; • Jewelry and gems; and • Collections. Fair market value. To determine the fair mar- ket value of these items, use the rules under Determining Fair Market Value, later. Cars, Boats, and Airplanes The following rules apply to any donation of a qualified vehicle. A qualified vehicle is: • A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways; • A boat; or • An airplane. Deduction more than $500. If you donate a qualified vehicle with a claimed fair market value of more than $500, you can deduct the smaller of: • The gross proceeds from the sale of the vehicle by the organization, or • The vehicle's fair market value on the date of the contribution. If the vehicle's fair mar- ket value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Prop- erty That Has Increased in Value, later. Form 1098-C. You must attach to your re- turn Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (or other statement containing the same informa- tion as Form 1098-C) you received from the or- ganization. The Form 1098-C (or other state- ment) will show the gross proceeds from the sale of the vehicle. If you e-file your return, you must: • Attach Copy B of Form 1098-C to Form 8453, U.S. Individual Income Tax Trans- mittal for an IRS e-file Return, and mail the forms to the IRS; or • Include Copy B of Form 1098-C as a pdf attachment if your software program allows it. If you don't attach Form 1098-C (or other statement), you can't deduct your contribution. You must get Form 1098-C (or other state- ment) within 30 days of the sale of the vehicle. But if Exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement) within 30 days of your donation. Filing deadline approaching and still no Form 1098-C. If the filing deadline is ap- proaching and you still don't have a Form 1098-C, you have two choices. 1. Request an automatic 6-month extension of time to file your return. You can get this extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. For more information, see the Instructions for Form 4868. 2. File the return on time without claiming the deduction for the qualified vehicle. After receiving the Form 1098-C, file an amen- ded return, Form 1040-X, Amended U.S. Individual Income Tax Return, claiming the deduction. Attach Copy B of Form 1098-C (or other statement) to the amended re- turn. Exceptions. There are two exceptions to the rules just described for deductions of more than $500. Page 8 Publication 526 (2021)